At this time of year the catch cry of many business owners is: 'I need to spend money to save on tax'.
This kind of thinking is inherently flawed:
- Firstly you have to spend the money, which can cause all sorts of cash flow problems.
- Secondly every dollar you spend you will only realise a saving of say 30% being the company rate of tax.
- Thirdly reducing your profit to not pay tax will ultimately stunt the growth of your business...